LAWS(DLH)-2013-11-426

CIT Vs. HANUMAN PRASAD GANERIWALA

Decided On November 29, 2013
CIT Appellant
V/S
Hanuman Prasad Ganeriwala Respondents

JUDGEMENT

(1.) THIS appeal by the Revenue has to be dismissed in view of the judgment of Delhi High Court in CIT v. Khoobsurat Resorts (P.) Ltd. : (2012) 211 Taxman 510 (Del) wherein it has been held that the circle rate as stipulated under section 50C can become the starting point of an inquiry but cannot be the sole concluding reason to hold that there was understatement of sale consideration. In the case of Khoobsurat Resorts (P.) Ltd. (supra) the appeal filed by the Revenue was dismissed on the ground that the Assessing Officer had failed to conduct necessary inquiries and rely upon any other objective facts and circumstances.

(2.) IN Khoobsurat Resorts Pvt. Ltd. (supra) reference was made to the decision of the Supreme Court in K.P. Varghese v. ITO : (1981) 131 ITR 597/7 Taxman 13 (SC) wherein in the context of amendment to Section 52 and insertion of Sub -section (2) it was held as under: - -

(3.) REFERENCE was also made to the decision of the Madras High Court in K.R. Palanisamy v. Union of India, : (2008) 306 ITR 61 wherein it has been held as under: - -